CoreLogic Pain & Gain Report


PHOTO: CoreLogic Pain & Gain Report

Key findings from this Pain and Gain Report (for resales between 1 January 2019 and 31 March 2019) include:

  1. The proportion of all properties resold in Q1 2019 for more than the original purchase price (i.e. a gross profit, or “gain”) was 96.5%, up a touch from Q4 2018’s figure of 96.2%. In other words, “pain” was very low, at only 3.5% of resales being made below the original purchase price.

  2. These strong figures are not surprising. After all, the New Zealand property market as a whole is still going through a long upswing in average values (albeit Auckland and Christchurch as examples have been on weaker paths lately) and properties held for a typical period of time (e.g. 7-8 years) are almost guaranteed a gross profit – especially since low mortgage rates and unemployment have minimised any pressure to push through a quick ‘fire’ sale for a low price.

  3. The national median resale profit in Q1 2019 was $189,000, for a total of $2.9bn. In Q4 2018, the median profit was a bit higher at $200,000, and a greater number of sales that quarter meant total profits were also higher at $4.4bn. The median loss in Q1 2019 was $20,000, with total losses at $22.3m.

  4. By property type, the share of houses resold for a gain stayed pretty high and steady in Q1 2019, at more than 96%. For apartments, the share resold for a profit ticked higher from 90% in Q4 2018 to 91% in Q1 2019. By buyer type, investors remain a little less likely than owner occupiers to resell for a gross profit.

  5. As you’d expect (and hope), renovations also make it less likely that a property will sell below its original purchase price. Only 0.3% of resales in Q1 2019 that had previously been renovated sold for less than the purchase price.


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